Biocon Q3 Report: Net Profit Down By 46%

Bengaluru: Biotech major Biocon on Wednesday reported Rs 92 crore consolidated net profit for the third quarter of 2017-18, registering 46 per cent decline annually from Rs 171 crore in the same period year ago.

Sequentially, net profit, however, increased 33 per cent from Rs 69 crore quarter ago. In a regulatory filing on the BSE, the city-based pharma firm said consolidated revenue for the quarter (Q3) remained flat annually at Rs 1,092 crore from the same period year ago, but 7 per cent up sequentially from Rs 1,019 crore last quarter.

"The net profit for the quarter was impacted by a 42 per cent increase in interest and depreciation costs to Rs 112 crore from our Malaysia operations," said the company in a statement here.

Earnings before income, depreciation and ammortisation (Ebitda) also declined 21 per cent annually to Rs 256 crore from Rs 324 crore in the same period year ago but 10 per cent up sequentially from Rs 233 crore quarter ago.

Ebitda margin for the quarter was 23 per cent. "This has been a significant quarter for us as we obtained the regulatory approval of the US Food and Drug Administration (USFDA) for biosimilar Trastuzumab," said Biocon Chairperson Kiran Mazumdar-Shaw in the statement.

A biosimilar is a drug, which is similar to its original product made by another firm.The company also tied up with Sandoz of Swiss-based Novartis during the quarter under the review to develop, make and market drugs for the global market.

"Our formulations and research services segments reported a healthy double-digit growth in the quarter. We expect growth in other segments to revive from early next fiscal," said Shaw.

Gross research and development expense was Rs 94 crore, while net R&D expense was Rs 53 crore, corresponding to 8 per cent of its revenue.

"Licensing income also plunged a whopping 85 per cent annually to Rs 12 crore from Rs 79 crore year ago and other income declined to Rs 34 crore, impacting the quarterly performance," said the company.